Developing and Implementing

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Developing and Implementing

  1. 1. A FRAMEWORK for MARKETING MANAGEMENT Kotler Keller Chapter 2 Developing and Implementing Marketing Strategies and Plans
  2. 2. Chapter Questions <ul><li>How does marketing affect customer value? </li></ul><ul><li>How is strategic planning carried out at different levels of the organization? </li></ul><ul><li>What does a marketing plan include? </li></ul><ul><li>How can management assess marketing performance? </li></ul>2-
  3. 3. Two Views of the Value Delivery Process <ul><li>Traditional Process Sequence </li></ul><ul><ul><li>Make product </li></ul></ul><ul><ul><li>Sell product </li></ul></ul><ul><li>Value Creation and Delivery Sequence </li></ul><ul><ul><li>Choose the value </li></ul></ul><ul><ul><li>Provide the value </li></ul></ul><ul><ul><li>Communicate the value </li></ul></ul><ul><ul><li>Which one is more costly? </li></ul></ul><ul><ul><li>Nike </li></ul></ul>2-
  4. 4. Five Core Business Processes to create value <ul><li>Market sensing: All the activities in gathering, disseminating and utilizing information. </li></ul><ul><li>Customer relationship management: All the activities in building deeper understanding for new customers. </li></ul><ul><li>New offering realization: All the activities in searching, developing, and launching new-high quality offerings quickly and within budget. </li></ul><ul><li>Fulfillment management: All the activities in receiving and approving orders, shipping the goods on time, and collecting payment. </li></ul><ul><li>Customer acquisition: All the activities in defining target markets and retaining them. </li></ul>2-
  5. 5. The Generic Value Chain (Michael Porter) <ul><li>Support Activities </li></ul><ul><li>Firm infrastructure </li></ul><ul><li>(Google) </li></ul><ul><li>Human resource management </li></ul><ul><li>(Microsoft) </li></ul><ul><li>Technology development </li></ul><ul><li>Primary Activities </li></ul><ul><li>Inbound logistics </li></ul><ul><li>Operations </li></ul><ul><li>Outbound logistics </li></ul><ul><li>Marketing and sales </li></ul><ul><li>Service (before and after sales) </li></ul><ul><li>(Dell’s technical support services) </li></ul>2-
  6. 6. Characteristics of Core Competencies <ul><li>A source of competitive advantage </li></ul><ul><li>Most of the traditional resources such as labor, materials, and energy are easily owned by companies except core competencies. </li></ul><ul><li>Applications in a wide variety of markets </li></ul><ul><li>Difficult to imitate </li></ul><ul><li>e.g. Nike: Design and merchandising, and </li></ul><ul><li> Mercedes: High quality and reliable cars. </li></ul>2-
  7. 7. Holistic Marketing Framework <ul><li>How can a company identify new value opportunities? </li></ul><ul><ul><ul><li>e. g. Volkswagen/Praton joint venture ~ Islamic Cars </li></ul></ul></ul><ul><li>How can a company efficiently create more promising new value offerings? </li></ul><ul><li>e.g. Apple ~ iPod </li></ul><ul><li>How can a company use its capabilities and infrastructure to deliver the new value offerings more efficiently? </li></ul><ul><ul><ul><li>e. g. Volkswagen vs. Praton </li></ul></ul></ul>2-
  8. 8. A Holistic Marketing Framework <ul><li>Value exploration </li></ul><ul><li>Value creation </li></ul><ul><li>Value delivery </li></ul><ul><li>Customer focus </li></ul><ul><li>Core competencies </li></ul><ul><li>Collaborative network with suppliers and middlemen. </li></ul><ul><li>e.g. Toyota ~ Al Futtaim </li></ul>2-
  9. 9. Corporate Planning Activities <ul><li>Defining the corporate mission </li></ul><ul><li>Establishing SBUs </li></ul><ul><li>Assigning resources to SBUs </li></ul><ul><li>Assessing growth opportunities </li></ul>2-
  10. 10. Product Orientation vs. Market Orientation 2-
  11. 11. Rubbermaid Commercial Products, Inc. 2- “ Our vision is to be the Global Market Share Leader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost- Effective, and environmentally responsible products. We will add value to these products by providing legendary customer service through our uncompromising Commitment to Customer Satisfaction.”
  12. 12. Motorola 2- “ The purpose of Motorola is to honorably serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total enterprise to grow; and by doing so, provide the opportunity for our employees and shareholders to achieve their personal objectives.”
  13. 13. eBay 2- “ We help people trade anything on earth. We will continue to enhance the online trading experiences of all–collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers .”
  14. 14. Characteristics of an SBU <ul><li>It is a single business or collection of related businesses </li></ul><ul><li>e.g. ULKER ~ chocolate, Biscuits, Dairy products. </li></ul><ul><li>It has its own set of competitors </li></ul><ul><li>It has a leader responsible for: </li></ul><ul><ul><li>Profitability </li></ul></ul>2-
  15. 15. Growth Opportunities <ul><ul><ul><li>Pg. 85 – Figure 2.4 </li></ul></ul></ul><ul><ul><ul><li>Market penetration strategy (CM-CP) </li></ul></ul></ul><ul><ul><ul><li>e.g. Penetrating the same market through advertising and promotions. </li></ul></ul></ul><ul><ul><ul><li>Market development strategy (NM-CP) </li></ul></ul></ul><ul><ul><ul><li>e.g. Etisalat, Emirates, Starbucks, KFC, McDonalds. </li></ul></ul></ul><ul><ul><ul><li>Product development strategy (CM-NP) </li></ul></ul></ul><ul><ul><ul><li>e.g. Nokia, Sony, P&G </li></ul></ul></ul><ul><ul><ul><li>Diversification strategy (NM-NP) </li></ul></ul></ul><ul><ul><ul><li>e.g. Walt Disney (Animated film producer) ~ Broadcast industry with WD channel </li></ul></ul></ul>2-
  16. 16. The Business Unit Strategic-Planning Process <ul><li>Business mission </li></ul><ul><li>SWOT analysis </li></ul><ul><li>Goal formulation </li></ul><ul><li>Strategy formulation </li></ul><ul><li>Program formulation </li></ul><ul><li>Implementation </li></ul><ul><li>Feedback and control </li></ul>2-
  17. 17. SWOT Analysis <ul><li>Strengths </li></ul><ul><li>Weaknesses </li></ul><ul><li>Opportunities </li></ul><ul><li>Threats </li></ul>2-
  18. 18. Market Opportunity Analysis (MOA) <ul><li>Can the benefits involved in the opportunity be articulated to a defined target market? </li></ul><ul><li>Can the target market be located and reached with cost-effective media and trade channels? </li></ul><ul><li>Does the company have access to the critical capabilities and resources needed to deliver the customer benefits? </li></ul>2-
  19. 19. Market Opportunity Analysis (MOA) <ul><li>Can the company deliver the benefits better than any actual or potential competitors? </li></ul><ul><li>Will the financial rate of return meet or exceed the company’s required threshold for investment? </li></ul>2-
  20. 20. Marketing Plan Contents <ul><li>Executive summary </li></ul><ul><li>Table of contents </li></ul><ul><li>Situation analysis </li></ul><ul><li>Marketing strategy </li></ul><ul><li>Financial projections </li></ul><ul><li>Implementation controls </li></ul>2-

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